Skip to comments.Postal Service Struggles to Stay Solvent, and Relevant (may shut down this winter)
Posted on 09/04/2011 4:49:11 PM PDT by Free ThinkerNY
The United States Postal Service has long lived on the financial edge, but it has never been as close to the precipice as it is today: the agency is so low on cash that it will not be able to make a $5.5 billion payment due this month and may have to shut down entirely this winter unless Congress takes emergency action to stabilize its finances.
Our situation is extremely serious, the postmaster general, Patrick R. Donahoe, said in an interview. If Congress doesnt act, we will default.
In recent weeks, Mr. Donahoe has been pushing a series of painful cost-cutting measures to erase the agencys deficit, which will reach $9.2 billion this fiscal year. They include eliminating Saturday mail delivery, closing up to 3,700 postal locations and laying off 120,000 workers, nearly one-fifth of the agencys work force.
The post offices problems stem from one hard reality: it is getting squeezed on both revenue and costs.
As any computer user knows, the Internet revolution has led to people and businesses sending far less conventional mail.
At the same time, decades of contractual promises made to unionized workers, including no-layoff clauses, are increasing the post offices costs. Labor represents 80 percent of the agencys expenses, compared with 53 percent at United Parcel Service and 32 percent at FedEx, its two biggest private competitors. Postal workers also receive more generous health benefits than most other federal employees.
(Excerpt) Read more at nytimes.com ...
Good riddance postal union.
Pray for America
Here comes 60c stamps
They are NOT a disinterested observer to any of this.
Frankly I never trusted them when I had to work with their agents and cronies and I sure don't trust them now.
But it won't survive the unions.
Offer the entire operation up for contract takeover on a long term lease. No stipulation for Saturday delivery, we don’t need it.
shut it down.
or trim it to the core. Make people go to their local post office to get mail. No more junk mail, yay.
Does anyone still use the post office for anything important? Isn’t practically all business communication these days by FEDEX, DHL or the other couriers — or email?
It’s time to realize that the postal service is an anachronism that has pretty much outlived it’s utility and downsize it to realistic projections.
It should probably be privatized.
privatize it, and do away with the union.
how many million will that add to the jobless rate in this nation?
We had stamp machines in our post offices in Birmingham, Al. and they took them out because they said the machine did away with one of the workers jobs. Now we have to stand in line to get a stamp. Fiscal responsibility is not on the post offices agenda. Keeping Postal workers jobs is. Until the government starts running like a business it will continue to lose money.
A lot of good people, many military veterans, work for the USPS. And unlike some government entities, this organization performs a Constitutional function and does useful work.
In an electronic age, all that will survive is the physical delivery of hard goods by parcel. Too bad for the USPS that it conceded its dominance in that business to FedEx and UPS decades ago.
The Post Office probably suffers from too many managers and adminstrators, just like the public schools. Cutting the real fat would save millions.
Sell it to UPS or Fed Ex
I just suggested the same thing for professions like electricians, plumbers, maintenance for schools and public buildings. Contract it out....We need to get rid of these big fat government pensions....it’s a snowball and it’s killing us!!
They could also alternate Saturday and Monday as days without delivery.
...and delivery once a week. Of course, UPS workers will be paid for a full week regardless.
The defining moment for me was one Christmas, standing in line at the post office during lunch hour, and listening to a postal worker whine about how busy the lunch hour was. Her solution was that the post office should close during the lunch hour.
Her attitude was that her job was sinecure, and we were inconveniencing her.
I have dealt with many friendly, helpful, efficient postal workers. Unfortunately, the deadwood is going to drag them all down.
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